The main goal of any company is to make a profit. For this to happen, the company needs to have a detailed and sufficient understanding of the market. This promotes innovation towards product development and ensures that marketing strategies are more effective and as a result, the companys goals and objectives are met. This paper will use Coca-Cola Company as its case study and consequently develop a product innovation charter (PIC) based on an identified area of technological or market opportunity.
Strengths. This is in terms of internal structure and customer views. One of coca-colas greatest strengths lies in its branding through its prolific advertising strategy that employs a holistic marketing approach. Its timeless and unchanging logo and the designing of memorabilia for its consumers such as t-shirts, hats, and wristbands that go hand in hand with its mission-to inspire moments of happiness and optimism. Another major strength of Coca-Cola is its bottling system, which is classy and well distributed locally in each of its markets and owned by independent businesses authorized to sell its products (Khan, 2012).
Weakness. Coca-Cola mostly produces high-calorie beverages, which have led to increases in health problems such as diabetes and obesity.
Threats. Changes in consumer tastes and preferences are a major social threat. Coca-Cola largely manufactures high-sugar/calorie content beverages. However, most people are now very keen on their health and so opt for healthier products such as smoothies, which have less or no sugar/ calories. Climate change is a major challenge for large beverage company such as Coca-Cola, which greatly relies on water for its manufacturing processes. Water is more so becoming a very scarce resource due to environmental degradation due to both manmade and natural factors. This means that such large-scale industrial companies are charged with a great corporate social responsibility i.e. to not only make a profit but also operate responsibly so as to address such environmental issues. This may be done through reducing packaging waste and carbon emissions.
Opportunities. Product diversification is key if Coca-Cola is to adapt to the ever-changing trends in consumer consumption. This involves Production of more low-to zero calorie beverage options in each of its markets, Packaging is also another potential area of growth i.e. to adjust portion sizes so that consumers can enjoy high-sugar drinks in moderation and transparency in providing clear nutritional information and forming strategic alliances with fitness and wellness programs (Khan, 2012).
Coca-Cola has however continued to diversify and expand into emerging markets based on technological and consumer shifts. Innovation is a process which requires time and gives a company the competitive edge through the development of high-quality products that are unique in the market (Sarkane, 2010).This means that for a huge industrial company such as Coca-Cola, corporate communication should not be too rigid or too official such that it stifles creativity among the staff members. Based on the opportunities mentioned earlier this paper will develop a Product Innovation Charter (PIC) based on Product diversification in Coca-Cola Company.
Coca-Cola Company is mainly focused on high-sugar carbonated drinks. However, a change in customer behavior, tastes, and preferences with regard to healthy living habits has shifted demand to healthier soft drinks such as smoothies due to an increase in lifestyle diseases such as diabetes and obesity thus leading to the need for the development of less or no-sugar/calories beverages. On the packaging, the company adjusting the portion sizes of the high-sugar drinks so as to create some moderation on their intake.
With regard to market, the sugar-free Coca-Cola beverages are meant to attract those consumers that opt for healthier products either due to health conditions or personal preferences and tastes. Moreover, smaller variants of cans and bottles starting from 180ml are being rolled out to facilitate market product testing and also curb impulse-buying of the same (Ulwick, 2005).The challenge here has been retaining the beverages original taste, From the 1982-developed diet coke, to 2006s coke-zero to coke with stevia( which is a natural sweetener) and the most recent zero-sugar product being Coke with no sugar which is claimed to have come closest to retaining the classic taste of Coca-Cola that has been cherished by consumers for years.
Goals and Objectives
The aim here is to promote customer retention and loyalty for countries such as Mexico (which has the largest number of coca-cola consumers in the world) and thus reclaiming our first position as the best beverage company in the world (Kahn & Ledwith, 2012). Mitigate against the obesity crisis in the more developed countries and reduce cases of diabetes according to health activists and professionals through the introduction of natural sweeteners.
This will involve the use of distribution channels. There is need to adopt a holistic marketing strategy that involves the implementation of both traditional and digital marketing strategies such as electronic marketing, social marketing and direct marketing (Sarkane, 2010). As much as the aim is mostly customer retention there is a need for customer selection (output-oriented market segmentation) so as to minimize the number of non-loyal customers who only come around when there is a sales promotion and vanish on the rise of a better offer from another supplier (Sarkane, 2010).
Lastly, for any company to thrive, information is key. According to Sarkane (2012), information is an undigested burden unless it is understood. Therefore for product development processes to be successful, it is crucial that a huge company such as Coca-Cola understand its market and especially its consumers behaviour, changing tastes and preferences and the generational shift. Moreover, this consequently calls for increased research and development in technological innovations such as the use of dispensing machines which are not very common in developing countries yet the Coca-Cola products are highly consumed in such countries and change in its bottle packaging systems.
Kahn, K.B. &Perks, H.(2012).An examination of new product development best practice. Journal of Product Innovation Management, 29(2)180-192.Management,15,478-481.
Sarkane, E.(2010). Diversity of marketing-trends and developments. Economics and
Ulwick A.W. (2005) What customers want. Using Outcome Driven Innovation to Create Breakthrough Products and Services. McGrowhill.
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